The infamous Andrew Neff upgrades:
AP
Synaptics Shares Lift on Computer Sales
Monday January 9, 12:13 pm ET
Synaptics Shares Benefit From Rise in Computer and MP3 Sales
NEW YORK (AP) -- Shares of Synaptics Inc. got a boost Monday, after an analyst speculated the maker of computer touch pads and click wheels may benefit from a rise in sales of notebook computers and MP3 players.
Bear Stearns analyst Andrew Neff upgraded the stock to "Outperform" from "Peer Perform," raised his 2006 earnings estimate to 66 cents per share, up from 61 cents per share, and established a $29 price target on the stock. Neff's earnings estimate includes 34 cents per share in option expenses.
Analysts polled by Thomson Financial, who typically exclude charges in their estimates, expect the company to earn, on average, 90 cents per share for 2006.
"Based on our channel checks, it appears that the notebook PCs continue to experience stronger-than-expected demand during the holiday season. In addition, owing to lack of availability of Apple iPod and limited supply of NAND memory, non-iPod MP3 players also saw better-than-expected demand," Neff wrote in a research note.
Synaptics shares have been under pressure since February, after it was disclosed that Apple Computer Inc.'s new laptop computers did not include Synaptics' touch pad, and the new iPods would not use Synaptics' click wheel. On Feb. 9, shares dropped 22 percent, to close at $25.88, down from $33.31.
"We assume no Apple business beyond second quarter 2006, but see the renewal of the relationship to represent an upside potential to the price target," Neff added in the research note.
Shares of Synaptics, which have traded between $15.03 and $41.19 over the last year, were up $1.32, or 5.0 percent, at $27.45 in midday trading on the Nasdaq.
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